[aljungberg]

If those loans are no-recourse loans with this FTT token as collateral, then should the token crash the liability just "disappears". The collateral will be sold to cover the loan. If the collateral is now worthless that was the risk the lender agreed to take on when issuing a no-recourse loan.

If they are Defi loans for example, they're pretty much automatically no-recourse loans.

[cryptoanon]

Exactly. It seems like the author has very limited insight in the space. It makes you curious how they could come to such a headline/conclusion, when they spend the entire article, talking about the assets instead of the liabilities!

[automatic6131]

>It seems like the author has very limited insight in the space.

lol. Lmao, even.

[gjvc]

You ought to know by now that HN readers are experts on everything.

[NotYourLawyer]

Are no-recourse loans typical in this space? Seems insane.

[josu]

Unless their liabilities are also in FTT.

[jevgeni]

that kind of a dynamic is not unique to crypto.